Canadian Natural to acquire 20% interest in Athabasca Oil Sands Project

The company states: “Canadian Natural Resources announces that it entered into an agreement to acquire, subject to regulatory approvals, from Chevron Canada Limited its 20% interest in the Athabasca Oil Sands Project, which includes 20% of the Muskeg River and Jackpine mines, the Scotford Upgrader and the Quest Carbon Capture and Storage facility. This acquisition brings Canadian Natural’s total current working interest in AOSP to 90%. The acquisition adds approximately 62,500 bbl/d of long life no decline Synthetic Crude Oil production, contributing to Canadian Natural’s significant sustainable free cash flow generation. The agreement also includes the acquisition of additional various working interests in a number of other non-producing oil sands leases with aggregate acreage of approximately 267,000 gross / 100,000 net acres. In addition, Canadian Natural has also agreed to acquire, subject to regulatory approvals, Chevron’s 70% operated working interest of light crude oil and liquids rich assets in the Duvernay play in Alberta. Production from these assets is targeted to average in 2025 approximately 60,000 BOE/d, consisting of 179 MMcf/d of natural gas and 30,000 bbl/d of liquids. These Duvernay assets provide the opportunity for meaningful near term growth while contributing additional free cash flow.”